The three founders of AI agent startup Manus — Xiao Hong, Ji Yichao, and Zhang Tao — are exploring a buyback plan that would raise roughly $1 billion from outside investors, in response to Beijing regulators’ order to unwind Meta’s acquisition of the company.
According to people familiar with the matter, the buyback valuation would at least match the $2 billion Meta paid for Manus. In addition to the $1 billion from external investors, the founders may chip in their own money to cover the rest. If the deal comes together, Manus would set up a joint venture in China with those investors and pursue a listing in Hong Kong.
This April, Beijing regulators notified the parties to cancel the acquisition, which was announced in December 2025. The regulators made clear they would do everything to prevent sensitive technology from flowing to U.S. companies. Earlier, regulators had taken a similarly tough stance, blocking domestic tech giants like ByteDance and Moonshot AI (Yuezhianmian) from accepting U.S. investment without approval, and tightening the regulatory path for offshore Chinese companies listing in Hong Kong.
Because most of the deal had already been completed, fully reversing it in practice is extremely difficult. Manus employees have already joined Meta’s Singapore office, and the technology is deeply integrated into Meta’s systems. Early investors like Tencent, Sequoia Capital China, and ZhenFund have already received their exit payments. For now, the buyback and separation plans are still in early discussions; the valuation and terms could change at any time, and the three founders may ultimately walk away.